FanDuel, DraftKings Reach $2.6 Million Settlement With Massachusetts Attorney General

Image via Washington Time

Daily fantasy sports websites FanDuel and DraftKings reached a settlement with the Massachusettes attorney general.

The sites will each pay $1.3 million to settle a pending lawsuit following “allegations of unfair and deceptive practices by the companies prior to 2016,” according to ESPN’s David Purdum.

“I am glad to have reached these settlements to address various consumer issues that existed at the early stages of this new industry,” Massachusetts Attorney General Maura Healey said. “We have since implemented a set of comprehensive regulations that provide consumers with broad-ranging protections and that have served as a model for many other states.”

Therefore, FanDuel and DraftKings are compliant with the current regulations. Healey began investigating the companies’ business models operating practices in early 2015. While investigating, she found that some participants of the daily fantasy sports sites were not adequately protected.

Furthermore, in 2016, the Massachusettes attorney general’s office implemented consumer protection regulations for the fantasy sports industry. Spokespersons for both FanDuel and DraftKings praised the attorney general’s work.

“We have worked closely with the Massachusetts Attorney General’s Office in their review of fantasy sports, including their issuance of the first set of consumer protection regulations for our industry, which we were pleased to comply with since their inception in 2016, ” FanDuel spokesperson Justine Sacco said in a statement.

“Over the last two years, the attorney general’s office has done an excellent job of working to fully understand DraftKings, our business, and the fantasy sports industry,” Tim Parilla, DraftKings’ general counsel, said in a statement. “That expertise informed the Massachusetts regulations which have now become the national model for common sense, consumer-focused fantasy sports regulations.”

Both sites have to pay up to settle the lawsuit. Although, I’m sure they’ll be fine. The start of the football season marks the height of the fantasy season. So the companies will make plenty of money.

On a Side Note:

Earlier this year the U.S. federal trade commission blocked FanDuel and DraftKings from merging. The FTC decided that the merger would hinder competition in the marketplace.

“This merger would deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel,” Tad Lipsky, acting director of the FTC’s Bureau of Competition said.


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